Capital Instrument Capital Component Main Features 3) Additional Tier 1 Capital Sukuk Wakalah Programme of up to RM5.0 billion • Tenure of the Sukuk Wakalah is perpetual, subject to the Call Option (where applicable). • Each Series of the Sukuk Wakalah issued under the Sukuk Wakalah Programme may have a call option (to be determined prior to the relevant issue date) to allow the Issuer, at its option, to redeem (in whole or in part) that Series of the Sukuk Wakalah on any Periodic Distribution Date on or after the fifth (5th) anniversary of the issue date of that Series of the Sukuk Wakalah at the Dissolution Distribution Amount. • Unsecured. • The proceeds from the Sukuk Wakalah Programme shall be utilised by the Issuer as to finance its general banking working capital requirements and/or other general corporate purposes and to defray fees and expenses related to the Sukuk Wakalah Programme. It may also be utilised to refinance/for redemption of any earlier issuance of Sukuk Wakalah under the Sukuk Wakalah Programme. All utilisations shall be Shariah Compliant. • Upon the occurrence of a Non-Viability Event, the Issuer shall irrevocably, without the need for the consent of the Sukuk Trustee or the Sukukholders, write-off the Sukuk Wakalah (in whole or in part) if so required by BNM and/or PIDM at their full discretion. • No Conversion into Equity. • Non-Convertible and non-Exchangeable. RM500 million at 5.16% • Issued on 24 August 2022 • Mature on 22 August 2121 (perpetual) Tier 1 Capital Total outstanding Subordinated Sukuk Murabahah and Sukuk Wakalah issued under all programmes which are qualified as Tier 1 and Tier 2 regulatory capital of the Bank and the Group as of 31 December 2023 is RM2.3 billion. 2.2 Internal Capital Adequacy Assessment Process (“ICAAP”) The Group has carried out the internal assessment process on capital as prescribed in BNM’s CAFIB - ICAAP (“Pillar 2”) to complement its current capital management practices. The first ICAAP Document Policy was formalised and approved by the Board in March 2013 and is being reviewed on an annual basis. The Group’s ICAAP process evaluates and sets the minimum internal capital requirement for its current and future business strategies and financial plans for the next 3 years via a comprehensive risk assessment process on its portfolio risk exposures, its risk management practices towards its material risks and potential capital planning buffer required in the event of stress. 2. CAPITAL ADEQUACY (CONTINUED) 2.1 Capital Management (continued) Table below depicts a summary of the Subordinated Sukuk Murabahah and Sukuk Wakalah Programme of the Group (continued): 411 www.bankislam.com 1 2 3 4 5 6 7 8 9 FINANCIAL STATEMENTS
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